After the European Parliament, it is the Council of the European Union which has just adopted the text which marks the end of salary secrecy in most companies. If a pay gap between men and women of more than 5% is observed, measures will have to be taken.
The fight against wage inequality is progressing. This is the second stage of a cumbersome process which has just been passed by the European institutions. From now on, the text only has to be published in the Official Journal of the European Union to apply concretely, within three years, in the States of the union.
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This text concerns equal pay between men and women. The pay gap between men and women is 13% within the European Union. The directive requires companies with more than fifty employees to break salary secrecy and publish information on the remuneration granted to women and men for work of equal value.
French companies rather well rated
With sanctions in support, because if the published report reveals a pay gap of more than 5% which cannot be justified by objective and non-sexist criteria, companies will have to take measures. A joint assessment will be carried out with the workers’ representatives. And the sanctions, in case of violation, should be “effective, proportionate and dissuasive and will include fines“, specifies the Council of the European Union. We can even obtain compensation for the damage suffered, as specified by the AEF agency, workers who have suffered wage discrimination based on sex will be able to receive compensation, including recovery full salary and bonuses.
In France, we already have the gender equality index which was created four years ago, and the average rating of companies is progressing, moreover. 93% of companies have a score equal to or greater than 75 out of 100. It is below this threshold of 75 points that, for companies, the problems begin. They must implement corrective measures within three years, otherwise they risk a financial penalty of up to 1% of their annual payroll. In the Public Service, such an index will be introduced this summer. The European measure goes further by prohibiting any unjustified deviation greater than 5%.
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